UPDATE 1-Immersion starts probe into some revenue transactions

* Says probe may raise issues related to prior results

* Says has not yet determined impact on prior results

* Shares drop as much as 23 pct

July 1 (Reuters) - Immersion Corp (IMMR.O), which develops touch feedback technology, said it was conducting an internal investigation into certain previous revenue transactions in its medical business, knocking its shares down as much as 23 percent in early trade.

"As a result of this investigation, Immersion may discover information that could raise issues with respect to its previously-reported financial information, which could be material," Immersion said.

The company, whose medical and surgical simulators emulate the look and feel of procedures, said the investigation was being conducted by an audit committee of its board of directors with the assistance of outside counsel.

The committee has not yet determined the impact, if any, to historical financial statements, Immersion said, adding that the investigation may delay the announcement of its quarterly results.

The company's stock fell $1.15 to $3.79, before recouping some losses to trade down $1.04 at $3.90 later in the morning Wednesday on Nasdaq. (Reporting by Santosh Nadgir in Bangalore; Editing by Himani Sarkar)